This research aims to analyze the effectiveness of the mixed economic model in controlling financial system stability in 7 emerging market countries. Where the monetary policy variables are the money supply and interest rates. Then the microprudential variables are Return On Equity and Return On Assets, the macroprudential variables are Capital Adequacy Ratio and Non Performing Loans. The financial system stability variables are the inflation level and exchange rate. The data analysis model in this research is the Simultaneous model. This research uses secondary data or time series, namely from 2019 to 2023. This analysis is significant for controlling the financial system by ensuring the data meets normality assumptions through the Jarque-Bera test, which allows for more precise financial planning and risk management decisions. The absence of autocorrelation effects, as proven in the residual test, also strengthens the reliability of the model in understanding market trends. The Two-Stage Least Squares method in simultaneous regression analysis provides in-depth insight into the relationship between economic variables such as the inflation rate and the exchange rate, supporting effective economic policy making. Understanding the elasticity of key variables to the inflation rate and exchange rate is also important for optimizing risk control strategies and financial resource allocation.

The banking industry has a very important role in a country's economy. One of the things related to the banking sector is operational activities towards the environment. The increasing environmental damage that occurs is a form of human indiscipline in managing natural resources. Therefore, efforts that banks can make to implement environmentally friendly practices in their operational activities are green banking by considering the 5P aspects, namely People, Planet, Partnership, Peace and Prosperity. Even though banks do not contribute directly to environmental pollution, sectors that carry out business activities cannot possibly operate if they do not have capital to finance their operations and one of the financial institutions that provides capital in the form of financing is banks. So, indirectly banks play an important role in environmental sustainability. This research aims to investigate the impact of green banking on financial inclusion and the growth of Islamic banking in Indonesia. The data analysis method employed is the Seemingly Unrelated Regression (SUR) method. The research approach is associative/quantitative, utilizing secondary data obtained and processed from annual reports and sustainability reports available on the official websites of the respective companies. Additionally, references from scientific journals and previous studies on selected Islamic banks are used. The sample includes PT. Bank Central Asia Sharia Tbk, PT. Bank KB Bukopin Syariah Tbk, PT. Bank Mega Syariah Tbk, PT. Bank Muamalat Indonesia Tbk, PT. Bank Panin Dubai Syariah Tbk, and PT. Bank National Retirement Savings Account Sharia Tbk, covering the period from 2019 to 2023.